Dhaka stocks increased on Monday after a fall in the previous session as some investors went for buying shares while most of the investors remained cautious amid prolonged bear run on the market.
DSEX, the key index of the Dhaka Stock Exchange, gained 0.4 per cent, or 22.02 points, to close at 5,426.82 points on Monday after losing 11.59 points in the previous session.
The key index was choppy at the beginning of Monday’s session but later moved upwards to finish the session in the positive trajectory as some investors, mostly institutional ones, went for buying shares, market operators said.
The overall market situation, however, was dull as most of the investors remained cautious on the trading floor, they said.
Turnover on the DSE dropped to Tk 618 crore on Monday compared with that of Tk 660.64 crore in the previous session.
Market operators said that investors were unwilling to make any investment move as the market had been falling for the last couple of months.
They said that approval of a number of initial public offerings in a short period of time drained a huge amount of liquidity of the secondary market.
The setting of ceiling on margin loan rate and repeated changes in regulatory policies have also become a heavy drag on the market, they said.
Share prices of non-bank financial institution sector continued to plunge on Monday after the Bangladesh Bank on February 24 issued a circular that the NBFIs which have classified loan ratio more than 10 per cent and capital adequacy ratio below 10 per cent will not be allowed to declare any dividend.
Share prices of Unilever Consumer Care Limited plunged by 7.75 per cent on Monday as the profits of the company plummeted by 46.30 per cent in 2020 compared with that in the previous year.
The company declared 440 per cent cash dividend for the year 2020.
EBL Securities in its daily market commentary said that the market witnessed frantic trading as investors were worried about the possible adverse impacts on the export incomes on LDC graduation of the country.
‘Despite high expectations on National Insurance Day, the insurance sector was unable to escape corrections and remained mostly subdued during the trading hours,’ it said.
Share prices of eGeneration Limited, which made its debut on February 23, shot up by the maximum limit allowed for the fifth day to close at Tk 29.8 a share on Monday.
Average share prices of general insurance, non-bank financial institution and bank declined by 1.2 per cent, 0.7 per cent and 0.2 per cent respectively.
Of the 339 scrips traded on the DSE on Monday, 129 advanced, 105 declined and 118 remained unchanged.
DS30, a composition of 30 large capitalised companies, added 0.61 per cent, or 12.56 points, to close at 2,069.39 points on the day.
Shariah index DSES also advanced by 0.5 per cent, or 6.23 points, to settle at 1,229.07 points. BEXIMCO led the turnover chart with its shares worth Tk 98.65 crore changing hands.
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